Hindustan Construction Company (500185) Q1 25/26 earnings summary

Executive summary

• Standalone net profit rose 70% year-over-year to ₹38.6 crore in Q1 FY26, with EBITDA margin improving to 14.9% from 12.6% year-over-year.

• Consolidated net profit reached ₹50.7 crore in Q1 FY26, reversing a net loss of ₹2.5 crore in Q1 FY25, with EBITDA margin up to 16.45% from 8.39%.

• Order backlog stood at ₹11,188 crore as of June 30, 2025, with robust bid pipeline of ~₹40,000 crore and L1 status on projects worth up to ₹6,532 crore.

• Major project milestones include inauguration of Anji Khad Bridge, commercial operation of Tehri PSP units, and near-completion of Mumbai Metro Line 3 and Coastal Road.

• Company holds significant share in India's infrastructure, including 60% of nuclear and 26% of hydro power capacity.

Financial highlights

• Standalone turnover for the quarter was ₹1,069 crore, down from ₹1,265.7 crore year-over-year, with EBITDA margin at 14.9%.

• Standalone profit rose to ₹38.6 crore, a 70% increase year-over-year.

• Consolidated income at ₹1,091.3 crore, lower year-over-year due to divestment of Steiner AG; consolidated PAT at ₹50.7 crore.

• Consolidated EBITDA margin improved to 16.45% from 8.39% year-over-year.

• Received ₹250 crore through Vivad se Vishwas II settlement, boosting liquidity.

Outlook and guidance

• FY 2026 revenue expected to be flat, with margins maintained at 13%-14% due to current project mix.

• Substantial revenue and execution ramp-up anticipated in FY 2027, with 15%-25% CAGR targeted from that year onward.

• Margin guidance remains in the 13%-15% EBITDA range for new projects.

• Order inflow expected to accelerate as L1 positions convert and bid pipeline materializes.

• Management expects continued strong business momentum and healthy outlook.